What would happen with my current OZ investments? Why would they only extend 2 years?
That would mean that the deferred gain (less any step up for the 5 or 7-year hold periods) would not be taxed until Dec. 31, 2028 instead of Dec. 31, 2026; it's a good thing. It may also mean that taxpayers can still qualify for the 5-year step up beyond this year. It would seem to me that the 2 years is the pandemic impact. Otherwise, all the other provision would stay intact, the 10-year rule, 2047 may become 2049, etc.
I would imagine the treatment of current investments doesn't change, but the deadline to invest (and probably the date of recognition of deferred gains) would be pushed out.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.